Alvan company Ltd uses process costing to manufactures a single product which passes through two processes, the output of process 1 becoming the input to process 2. Normal losses and abnormal losses are defective units having a scrap value and cash is received at the end of the period for all such units. The following information relates to the four-week period of accounting period number 7. Raw material issued to process 1 was 3000 units at a cost of $5 per unit. There was no opening or closing work in progress but opening and closing stocks. Process 1 10% 2800 $2 $4000 $10 000 Process 2 5% 2600 Normal loss as a percentage of input Output in units Scrap value per unit Direct wages incurred Direct expenses incurred Production overhead as a percentage of direct wages $5 $6000 $14 000 75% 125% Required: You are required to present the accounts for: a. Process 1 b. Process 2 c. Abnormal loss/Abnormal gain